Lauter Printing Uses Two Measures of Activity, Press Runs and Book

question 92

Multiple Choice

Lauter Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $5,300 per month plus $480 per press run plus $1,080 per book set-up. The company expected its activity in October to be 169 press runs and 64 book set-ups, but the actual activity was 167 press runs and 60 book set-ups. The actual cost for wages and salaries in October was $155,690.
-The activity variance for wages and salaries in October would be closest to:

• A) $5,280 U
• B) $150 U
• C) $150 F
• D) $5,280 F

---

Definitions:

Job Involvement

Defined as the extent to which an individual is dedicated to a job.

Organisational Commitment

Defined as the loyalty of an individual to the organisation.

Quality of Work Life

A concept that involves the consideration of job satisfaction, safety, and overall environment, aiming to improve employees' work conditions.

Psychological Contract

An unwritten agreement that exists between an employer and their employees, outlining mutual expectations and promises.